Reply to: 34 yrs to go

[TheRightStuff]

For what I imagined to be a flippant and light-hearted initial post on this subject, you seem to have become remarkably defensive.

I've gone through this thread but can't see where I wrote blah, blah, blah. I'm off sick today with a cold so need some assistance here.

[chicane]

Personally, I'm taking the freedom and flexibility option, but each to his own.

Similar story here. I consider high earnings to be a privilege rather than a right - this means that our monthly outgoings are (currently) roughly a third of our net income due to what some might consider to be a frugal lifestyle and lack of regard for material possessions.

The lack of money-related stress resulting from this is worth its weight in gold.

[rootsnall]

He's trying to rationalise taking on a large amount of debt when the credit cycle is (or will shortly be) tightening.

It's easy to be seduced by the 'need' to have large, expensive houses, but you have to ask yourself how much space you really 'need'.

Personally, I'm taking the freedom and flexibility option, but each to his own.

Think we'd better shut this thread down !!!! I'm going through the same dilema myself at the moment but I'm living in a 3 bedder with a second kid just about to arrive and a wife with very strong nesting urges. I can afford the bigger house without a mortgage but I'm still constantly trying to justify buying big in a very toppy housing market. I think we are very near to the tipping point but I still think it'll take a number of years to see real 'bargains' out there and I might be an old man by the time it does happen.

[bobhope]

For what I imagined to be a flippant and light-hearted initial post on this subject, you seem to have become remarkably defensive.

He's trying to rationalise taking on a large amount of debt when the credit cycle is (or will shortly be) tightening.

It's easy to be seduced by the 'need' to have large, expensive houses, but you have to ask yourself how much space you really 'need'.

Personally, I'm taking the freedom and flexibility option, but each to his own.

[chicane]

blah blah blah

For what I imagined to be a flippant and light-hearted initial post on this subject, you seem to have become remarkably defensive.

[Euro-commuter]

so my average household income of over 5K net p/m and a potential mortgage of 1.5K. Of course that only gives me 3.5K p/m to survive on. I'll never manage to do that. Thanks for telling me that you have saved us from financial ruin.

I'm not compromising my retirment at all. Another reaseon for getting a bigger house is to become geared again. In 20 yrs time I will then move out of the house, buy a smaller place and regain the equity.

Fine. But quite a different story from the opening of the thread, where

You said
34 yrs to go
... to retirement. Oh f*%K

and Chicane said
Real contractors always intend to retire within the next 10 years.

and You said
dream on. Kids, wife not working, increase in living costs etc.
Get in the real world

Look, I really don't want to run your financial life ot even give any advice. But I do sometimes reply to what people actually say. I did that here and now find that I have apparently insulted you. Sorry. OVer to you for last word.

[TheRightStuff]

What I said: if you think that a 4-bedroom house is too small for 2 adults and 1 small child, you have an inflated idea of the space that you "need" given the area that I believe you insist on living in, and your household income.

Your life, your decision. But that was my point.

PS, contrary to what you say, you do have to compromise: you are compromising your retirement. Which I think was your original point.

so my average household income of over 5K net p/m and a potential mortgage of 1.5K. Of course that only gives me 3.5K p/m to survive on. I'll never manage to do that. Thanks for telling me that you have saved us from financial ruin.

I'm not compromising my retirment at all. Another reaseon for getting a bigger house is to become geared again. In 20 yrs time I will then move out of the house, buy a smaller place and regain the equity.

[Euro-commuter]

Whats your actual point?

What I said: if you think that a 4-bedroom house is too small for 2 adults and 1 small child, you have an inflated idea of the space that you "need" given the area that I believe you insist on living in, and your household income.

Your life, your decision. But that was my point.

PS, contrary to what you say, you do have to compromise: you are compromising your retirement. Which I think was your original point.

[TheRightStuff]

If you find a 4-bedroom house too small for 2 adults and 1 child, then you are, frankly, going to have to make some choices.
Like, just not have so much stuff; or, not live in such an expensive area.

If you won't compromise on either of those things, you need to be rich, because you are definitely thinking rich.

PS or you haven't noticed that even 1 child expands to take all the time and space available! You'll be stepping over stuff wherever you live.

the house was orignially a small 3 bed semi which has had an extension added behind and above the garage. the lounge and dining rooms are only 14ft x 11ft and the kitchen is 16ft x 10 ft but there isn't any room for a table.
I don't have to compromise at all. As I said we don't have a mortgage so I can afford a much bigger 4 bed detached with 3 reception rooms ( 1 will be a play room) and a big kitchen. We've seen a house that we like but we are just waiting to sell ours.
Yes I have noticed 1 child takes up alot of space which is why I am moving and yes she does take up alot of our time but I am loving every minute of it.
Whats your actual point?

[Euro-commuter]

yeah I feel so poor. Not.
4 bed house but downstairs is not big enough as we have play mat and toys everywhere. We are now stepping over things.

If you find a 4-bedroom house too small for 2 adults and 1 child, then you are, frankly, going to have to make some choices.
Like, just not have so much stuff; or, not live in such an expensive area.

If you won't compromise on either of those things, you need to be rich, because you are definitely thinking rich.

PS or you haven't noticed that even 1 child expands to take all the time and space available! You'll be stepping over stuff wherever you live.

[TheRightStuff]

??

[TheRightStuff]

I wasn't having a go !? Urging a bit of caution maybe ! 'Too much demand' is EA/vested interest speak for explaining toppy house prices that don't make any sense.

I know you weren't. Just seems as though if your not earning £1000+ p/d people on here put you down. I'm happy with my pay so it doesn't bother me.
I'm happy with everything I've got and my actual living costs are low.
I don't drink or smoke and enjoy my golf, tennis, running etc. which compared to smoking and drinking is cheap. We've had great holidays before our child was born and it's great to come home and see my wife and child there at home waiting for me.

So all this rubbish about I was earning 350 p/d when wheels were square and I would only take that rate to fill a gap means nothing to me. Doesn't impress me at all. Working part time until I'm in my late 40/50 doesn't bother me.

No one has told me what they regard as a good rate yet.

[rootsnall]

yeah I feel so poor. Not.
4 bed house but downstairs is not big enough as we have play mat and toys everywhere. We are now stepping over things. If my house is boomed then so is the next one. Don't think it makes a big difference if your allready on the ladder. Lets say price go down by 10% mine will go down by 40K the next house down 60K. However, I don't think prices will go down, more likely to stabilise. Too much demand. I'm also going to stay in the house for a while so it shouldn't make a lot of difference. If your not on the ladder then it might be worth waiting.

So what sort of rate should I aim for to retire early 450, 500????

I wouldn't say at £350 p/d retirement is a dream. It's just not likely in the near future. I've also had some bad times with being made redundant twice in 1 year. Ended up going contracting 3.5 yrs ago and my first gig was 160 p/d.

I've worked my way up and now on 350 p/d so far. Now going to look at Project management as my next step up. Don't think I've done too badly considering I've had some bad luck with permie positions.

I wasn't having a go !? Urging a bit of caution maybe ! 'Too much demand' is EA/vested interest speak for explaining toppy house prices that don't make any sense.

[wendigo100]

Just had a flashback to first contract & living on drawings of £1500@ month !!

"Drawings" ... those were the days!

[lukemg]

I am out at 55 and I don't care how much money I have then. From what I have seen, anyone in a fairly well paid profession ends up with miles more money than they need when they retire/die. Hand-to-mouthers always struggle cradle to grave.
If necessary, sell the house and rent somewhere (income from the capital will likely cover the rent leaving the capital intact if need be/for the kids)
Get a good range of share investments started when you have spare cash, cook these for 25 years and they will see you right. Chuck in a bit of inheritance and you are home free.
Most people are going to die owning a house they have slogged to pay-off for decades, why is this a great idea ?
My family history says 3 score and 10 is my lot and everything else is a bonus, I intend to enjoy the last 15 while I am physically able (god-willing). I accept I will never be rich but I can have a comfortable life without too much trouble.